Yemisi Izuora
The Nigerian Aviation Handling Company (NAHCO) Plc has set N300 billion total Group revenue target within the next five years.
Group executive director, International Business & Corporate Services of NAHCO, Dr. Sola Obabori stated this at the Company ‘bell ringing and facts behind the figures’ held yesterday in Lagos.
Obabori said “we are embarking on a five-year transformation journey to build a new Nahco, centered around four key pillars; accelerate growth in business, differentiate with operational excellence, lead with digital and deliver a transformed people and culture.”
According to him, “We are committed to achieving specific performance goals by 2029, while simultaneously expanding our service offerings.”
On revenue projection, he stated that “the Company will achieved N38.49 billion at the end of 2024, N71.12 in 2025, N101.93 billion in 2026, N146.07 billion in 2027, N209.34 billion in 2028 and N300 billion in 2029.”
On subsidiary target to the Group, Obabori explained that “Ground Handling will contribute N120 billion: Cargo Handling to contribute N40 billion, while NAHCO Logistics Services will contribute N36 billion.
“Others subsidiaries are NAHCO Free Zone, NAHCO Commodities, NAHCO Travel & Hospitality, Aviation Academy will contribute N15 billion, N80 billion, N7 billion and N2 billion.”
He added that “this projected growth trajectory compels us to prioritize operational efficiency and performance improvement.”
Obabori pointed out that the African aviation industry has shown remarkable resilience in recovering from the challenges posed by the COVID-19 pandemic, experiencing steady growth in recent year, saying that the Nigerian market has exhibited resilience and growth, even amidst a challenging economic landscape.
He added that NAHCO has consistently demonstrated its ability to capitalize on expanding markets through innovation and adaptation.
He noted further that the Company is actively taking steps to enhance its performance and operations, adding that “we will prioritize a number of key initiatives aimed at enhancing operational efficiency and significantly improving the company’s financial position.”
The chairman of NAHCO, Seinde Fadeni stated that “as a company that has consistently paid high dividends over the years, NAHCO will continue to seek higher dividends for its shareholders.
“To do that, the Company has to increase profitability. To increase profitability, the Company is making make huge investments in manpower and equipment.”
Fadeni noted that “we have been taking delivery of brand new ground support equipment (GSE) to further enhance our service delivery.
“We have a broad plan to replace the few ageing equipment in our fleet by 2025. NAHCO will continually create and take advantage of opportunities to increase shareholders’ value.”
Also, the CEO of Nigerian Exchange, Jude Chiemeka said, “NACHO has leveraged NGX platform to share its financial performance, operational development, strategic initiatives as well as providing timely and accurate information to enhance trust among the NGX members.”
He noted that “the Company is a leading provider of ground handling services in Nigeria, catering to domestic and international airlines. Established in 1979 as a government-owned entity, NAHCO has privatized and subsequently listed on the Nigerian Exchange. Today, the company operates within the services sector which pulls a shareholder base and plays a pivotal role in the aviation industry.”
He noted that NAHCO contributed N3.1 billion in taxes in 2023, highlighting its pivotal role in bolstering government revenue and supporting Nigeria’s economic growth.